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Housing loan exemption in case of Joint loans

Girish Kapoor (Accountant & MBA student) (50 Points)

08 September 2009

Hi,

In case of joint housing loan taken by husband & wife. What will be the basis of disturibution of interest and principal component between both of them. It should be on the basis of ownership raion or payment ratio???

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2 Replies

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 08 September 2009

If any share mentioned in the flat purchase agreement then that ratio or payment ratio will be preferred. It can also be mutually be decided between you both as you could also show the amount paid by the husband as paid on her behalf as loan to the wife and claim 50:50 interest & principal

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CA. Nitin Agrawal (Chartered Accountants) (1066 Points)
Replied 08 September 2009

According following is the answere: 1. Exemption will be claimed according to the fact & circumstances. For example: Suppose someone added her wife as joint holder only for the purpose of the loan eligibility criterial but the loan amount is paid by the him. Then in this case deduction will be allowed only to the person who is paying the laon amount (irresepective of the fact that loan is taken on joint name) Its all depend upon who is actually paying the laon amount. Cheers...